Costco IPO, Why I’ve Been Going to Costco Weekly Since the Pandemic, and Why It is Literally Crazy to Not Buy a Costco Membership
So let’s talk about Costco, the Costco IPO that happened several years ago, and how you can use a Costco membership to save a ton of money, and have some fun at the same time. Why someone would not have a Costco membership is absolutely beyond me, and I definitely think that it is worth the money. In this blog post, I’ll talk about both the advantages and the disadvantages of having a Costco membership, and will discuss why it is literally saving you money by paying the $60 per year annual fee, both due to the savings in gas costs, the bulk discounts that you can get on food and household supplies, and of the amount of fun that it can be to go into Costco! For more information on Costco, stocks and all things finance, be sure to comment down below and subscribe to our blog for additional details and information!
Some of the benefits of having a Costco membership include:
Gas is 20 cents per gallon cheaper, a savings of about $147 per year!
Food is cheaper
Bulk discounts on food, drinks, pantry food, and household products
It is much more fun to shop there!
Much cleaner and higher class than Walmart and Target is
It’s where Rich people shop!
Significant rewards points and benefits that compound year after year
High rewards points credit card discounts
Friendly Customer Service
And a whole lot more, read on to hear about my Costco journeys and how much money I’ve saved just over the past month of shopping there.
Why I love Costco, and Why The Costco IPO Went So Incredibly Well
The Costco IPO has definitely gone incredibly well since the inception of their initial publicly traded security in late 1985 at a price of $1.67 per share. Since then, the Costco stock price has grown to $343 per share, and their market cap has become as high as $152 billion, as big as Walmart! The Costco subscription revenue model, as well as their bulk discounts and in store prices has made them win for a variety of reasons.
- You cannot shop there without a Costco membership, which costs $60 per year.
- Costco makes over $4,000,000,000.00 per year in memberships
- You can shop at Costco with a friend if you don’t have a membership, which entices you to purchase a membership
- Everything they have there is large and in bulk, so you spend a lot of money there
- Because they buy in such bulk, they are able to take advantage of economies of scale and offer bulk items at incredibly low prices.
Personally, I have started to go to Costco every single Saturday with my roommate for the last month or so, and I’ve calculated that I’ve saved well over $350 just from doing so, for a variety of reasons.
- He drives, so I save a little bit of $$ each week on my grocery store commute
- Still don’t have to buy a membership because I’m going with a friend, although I will be purchasing next year!
- I have purchased five servings of Steak and Veggies for just $24 each week, when I used to purchase $75 per week worth of Jimmy John’s sandwiches each week, saving me literally $50 per week just from this.
- I also purchase other things in bulk, saving me more money. I also have a ton of fun going there each week, as they have a really cool restaurant in there and they always have really cool items worth looking at..
My Experience Shopping at Costco, and How I Saved $400 Shopping at Costco for One Month
Yes, you read that correctly, I am literally saving $100 per week by shopping at Costco, and I could easily save an Extra $3.50 per week by buying a Costco membership for $60 per year, or $5 per month whichever works for you, in that by saving $0.20 per gallon on Costco fueling centers, I am able to save an additional $144.47 per year, not including the Costco membership fee! Just by fueling your tank (provided you are still driving to work everyday and not working remote due to the pandemic) you can easily save tons of money on your monthly gas bill, plus have a ton of fun shopping there and buy items in bulk!
Among the other ways you can save money at Costco, are by purchasing the membership to help out your personal finances, and then using the additional savings to buy Costco stock. This way, you have some mild stake in the revenues, so that every single time that you spend any money there, on some level your stock price is appreciating 🙂 You can also sign up for a Costco rewards credit card, giving you as much as 2% back on all of your Costco purchases! There are tons of never ending possibilities with Costco stock and with a Costco membership, and I would highly recommend using them.
Final Thoughts on the Costco IPO, Pros and Cons of Owning This Heavily Subscription Based Stock
In short, if you haven’t been able to tell by my incessant rambling, I absolutely love Costco, and Costco stock, and I would definitely hold it as a small percentage of my portfolio for a decently long period of time. I only see Costco’s market value increasing as a result of this pandemic, as people look for ways to shop less frequently (ie. buying in bulk) and look for ways to shop smart and save more money (ie. buying a membership to save on gas and to buy in bulk to save on food and household products.) Costco is definitely a winning and defensive stock, and I am definitely going to be holding it in my portfolio through the pandemic! What do you think of Costco and Costco stock? Leave a comment down below and subscribe to our blog for regular updates on all things Finance.
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